Keller Williams commission split is very competitive compared to other real estate firms. Every agent at Keller Williams is treated exactly the same. There are no prima donna’s running around yelling at new agents for doing something wrong or parking in their coveted reserved parking space. Every agent is on a 70/30 split. That’s 70% to the agent and 30% to the broker. Since KW is a franchise, there is a franchise fee (6% on each transaction up to $3,000) which is included in this calculation.
Another way you may see this calculated is with an agent on a 64/30/6% split. 64% to the agent, 30% to the market center and 6% to KWRI (capped at $3000). Both formulas get you the same result because the Keller Williams commission split is capped.
The best part about the Keller Williams commission structure is the ‘cap’. Each office has a cap on commissions based on economic conditions and operating expenses for that specific market center. Also contributing to the cap amount is the average median home price in your area. It usually amounts to selling 8-10 houses per year. Once an agent reaches the set amount of production (cap), they are no longer required to pay the office a split, meaning the agent is at a 100% commission until their anniversary year starts again.
OTHER REAL ESTATE COMPANIES COMMISSION STRUCTURE
INDEPENDENT REAL ESTATE BUSINESS MODELS
“Good luck, I hope you make it” is a good way to sum up this model. You’ll see the independent type of commission structure with discount brokerages or 100% commission companies. The main focus is the success of the broker, not the agent. This type of broker-centric model is one-sided and is not designed for agents that need training, technology or support.
DEPENDENT REAL ESTATE BUSINESS MODELS
Dependent real estate companies are the most common type of brokerage in the industry. Their commission split usually starts at the traditional 50-50 split. This split can continue for as long as you are selling or it can operate with a sliding scale. Based on your production, it can move to 60-40, 70-30, 80-20 and so on. The most important thing to notice here is you will always be paying your broker a fee. There is no cap or end in sight. Most franchises do not cap their franchise fee, so even if you work your way up to a 100% commission split, the broker is still getting paid. Dependent brokers also generate leads for their agents. Sounds good, right? Think again.
INTERDEPENDENT REAL ESTATE BUSINESS MODEL
At Keller Williams Realty, we teach you how to generate your own leads and take ownership in your real estate business. It’s like the old saying, “Give a man a fish, feed him for a day. Teach a man to fish, feed him for a lifetime.” The KW business model is interdependent, meaning you are independent in running it, but are not just thrown out there to fend for yourself. We provide the tools, resources, strategies and empowerment for you to run and manage your own real estate business.
That’s probably one of the reasons you are getting into this business, right? To take control of your life, your schedule and build a legacy for your family. KW promises to teach you to be independent in your business and also give you the leverage to balance your business and personal life. It’s not just about business at Keller Williams. It’s about the quality of life of our agents. Bottom line, if you don’t succeed, Keller Williams doesn’t succeed. By offering a cap on commissions, KW gives agents the best opportunity to take home more money than any other real estate business model.